Joann to Shutter All Stores After Failing to Find a Buyer
Fabrics retail chain Joann will shutter all of its approximately 800 locations after failing to find a buyer that would keep its stores open, reports CNBC. In January, the retailer filed for Chapter 11 protection for the second time in a year, saying that inventory shortages had forced it to back into bankruptcy. In a statement, Joann said it would commence nationwide going-out-of-business sales and wind down operations as a stipulation of the bidders that won its assets at auction, GA Group.
Joann had experienced a brief revival a few years ago thanks to the stay-at-home crafts boom during the pandemic. The company went public in 2021, but by 2023 its sales had tanked and it filed for an initial bankruptcy proceeding in 2024. The 81-year-old retailer attributed its first bankruptcy to struggles with customers cutting back on discretionary spending.
Total Retail's Take: Unfortunately, Joann didn't emerge from its second time in bankruptcy court with a buyer to save its business. The legacy crafts and fabric retailer becomes one of our first retail casualties of 2025. High inflation, increased competition, and supply chain disruption caused “irreparable harm” to its post-bankruptcy business plan, according to its court filings. Other craft chains such as Michaels and Hobby Lobby, as well as online players and general merchandise retailers like Walmart increasing crafting products continued to hurt Joann. In an email sent to Total Retail, Creditsafe assessed that overdue supplier payments and mounting debt created a liquidity crisis for Joann’s, in addition to other troubles.
"JOANN leadership, our Board, advisors and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business," the company said in a statement. "We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders. We deeply appreciate our dedicated Team Members, our customers and communities across the nation for their unwavering support for more than 80 years.”
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
